– He tells MF:
The Ministry of Finance for Foreign Consulting has submitted a draft regulation exempting companies from Great Britain from the obligation to appoint a VAT representative.
British entrepreneurs operating in Poland are required to do so under applicable law.
Poland will be the next country, after France, Germany, Italy, Belgium, and Lithuania, to offer such a solution.
We want to make it easier for companies operating or intending to run a company in Poland, as well as for Polish entrepreneurs’ contractors. The United Kingdom is one of Poland’s closest trading partners. We want to provide entrepreneurs operating across borders with the greatest possible comfort, explains Deputy Finance Minister Jan Sarnovsky.
It is a great convenience for businessmen from Great Britain. Transactions made in Poland, they will be able to perform them according to the current conditions with which they are already familiar. Thanks to this solution, administrative burdens and costs related to running a business in Poland will be reduced, adds Dr. Bowie Celera, Director of the Goods and Services Tax Department at the Ministry of Finance.
From the beginning of 2021, after the Brexit transition period ends, the United Kingdom is treated as a third country in trade relations with the European Union. For this reason, British companies wishing to continue operating in the European Union countries are required, as a general rule, to appoint a tax representative for VAT purposes in those countries.
However, the VAT Directive makes it possible to disavow this requirement for taxable persons who are established in third countries and with whom there are legal tools in the field of administrative cooperation, anti-fraud and value-added tax recovery. Currently, these tools are provided in the trade agreement between the European Union and the United Kingdom, as well as the agreement between the European Union and Norway on administrative cooperation in the field of value-added tax.
Consultations on the draft bylaw will continue until February 15, 2021. Comments and opinions can be sent to the following address: [email protected].
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